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© 2019 Olivine, Inc. All copyright and trademark rights reserved.

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Supply-Side Pi lot I I Introduction


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Design > Requirements > Settlement

Supply-Side Pilot (SSP II) Design Features

SSP II is a demand response pilot integrated with CAISO wholesale markets with an emphasis on providing distribution grid value• Agenda

– Design– Requirements– Settlements


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CAISO Markets In a Nutshell

• Four Basic Products– Energy – By Interval to Balance Supply and Demand– Non Spinning Reserves – Off-line, 10-Minute for Grid

Contingencies – Spinning Reserves – Immediately Dispatchable for Grid

Contingencies– Regulation – Instantaneous Supply and Demand

• Two Basic Market Timeframes– Day Ahead Market (DAM)

• 24 Separate Hourly Solutions• 100% of AS Requirements Procured Based on Forecast

– Real-time Market (RTM)• 15-Minute Capacity and Unit Commitment• 5-Minute Energy


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Supply-Side Pilot Design Features

Pilot Operations Overview:– Nominate capacity into Pilot– Bid day-ahead energy (DA)

• C&I: Optionally bid into real-time energy (RT) & ancillary services (A/S) markets

– Respond to market awards by reducing load– Performance calculated by “10-in-10” baseline– Participant earns capacity payment ($10/kW-

month)– Wholesale market settlements passed along

directly to participant


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Roles

Customer/ Aggregator

-Customer recruitment-Schedule notification and which customers will perform each hour

OlivineInterface between

Participant and market (s)

-Enrollment, Registration-Nominations and Bidding-Award and Dispatch Notification-Settlements and Payments

PG&EPilot Sponsor

CAISO Markets


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Eligibility Criteria

• One PDR per participant• All locations in a PDR must be:

– Served by the same LSE– Located in the same Sub-LAP

• Underlying customer may not be enrolled in any other DR program before/while enrolled in SSP II (e.g. SmartRate, PDP)

• Each PDR must be able to provide four (4) consecutive hours of 100 kW minimum load shed

PDR


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Eligibility Criteria

• 30 kW “Out of Market” Option (Residential Only)– Approved resources from 30-100 kW may

participate in the SSP II without CAISO registration– Dispatches will occur according to CAISO price

signals. – Participation can transition to CAISO once 100 kW

achieved.– May pursue statistical sampling to form baseline

for larger aggregations


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Pilot limitations

• Total capacity award may be limited• All underlying customers must be interval

metered– Limits on number of locations– Limits on registration changes


Enrollment Process Responsible Deadline(in Calendar time before the

first trade date, T)

Declaration of Interest Form Participant

Enrollment Workbook, CISR Form, Customer Acknowledgement Forms (Aggregators only), Pilot Contact Form

Participant T – 8 weeks

PG&E Eligibility Check PG&E T – 6 weeks

Participation Agreement Executed Participant T – 5 weeks

PDR registration at ISO Olivine, ISO T – 4 weeks

Pilot Training Participant, Olivine T – 3 weeks

Qualified Capacity Test Participant, Olivine T – 2 weeks

Hands-on Training Participant, Olivine T – 1 week

>>>Begin Market Operations T


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Pilot Requirements (Overview)

Qualified Capacity Nomination Bid

Schedule & Complete QC Test

Enter monthly nomination in

Olivine DR

Make appropriate number of block

bids

Once(unless requesting

a change)

Monthly Ongoing

Participants maintain eligibility in all areas to receive capacity payment


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Qualified Capacity (QC)

• QC = Max quantity biddable into the market• Test of avg. energy delivered over the period

400

500

600

500

0

250

500

750

3:00 PM 4:00 PM 5:00 PM 6:00 PMDelivered kW

(400 + 500 + 600 + 500) / 4 = 500 kW Qualified Capacity


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Nomination

• A monthly capacity commitment to deliver load shed for the pilot

• Forms the basis of the monthly capacity payment

• Nominations cannot exceed qualified capacity value (QC)


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Bidding Requirements

• 4-hour blocks x 18 unique days = 72 bid hours ($10/kW-month)

• May enter bids for any hours (24 x 7)• Dispatchable for at least 24 awards per month


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Bidding Requirements (Summary)

Bid Blocks Total Bid Hours

Unique Days

Dispatchable at least

Capacity Payment

4-hour contiguous bid blocks

72 18 24 hours per month

$10 kW-month


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SSP II Participation

• Bids have both a price and quantity– Price Floor = Net Benefits Test Value – Price Ceiling = $150/MWH

• Bids & awards are hourly• Timelines:

– Bids: 8:30am the day before– Awards: by 1pm the day before (if available)

• OpenADR optional


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Bidding Requirements (Day-ahead)

Price($)

Quantity(kWh)

Nomination Qualified Capacity

Price Ceiling

Net Benefits Test Value(NBT)

“Qualified” Bids made in this range


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Settlement

Two sources of revenue for SSP: 1. Capacity Payments: Dependent on fulfillment of pilot requirements above

2. Wholesale Energy Payments: All payments & charges from wholesale market are passed along directly to participants


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How is performance measured?

• “10-in-10” Baseline calculates an average of the whole premises (i.e., no sub-metering) meter data – Based on 10 previous similar days – Day-of adjustment capped at ± 20%– 45-day look-back period– Determines load reduction or “pseudo-

generation”

• Applies to capacity and energy settlements


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Baseline Step #1

• Identify 10 similar, non-event days

Event Day 8/24/2018


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Baseline Step #2

• Calculate Average Profile

Event Day 8/24/2018


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Baseline Step #3

• Determine day-of adjustment


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0.00.10.20.30.40.50.60.70.80.9

12:3

0am

1:30

am2:

30am

3:30

am4:

30am

5:30

am6:

30am

7:30

am8:

30am

9:30

am

10:3

0am

11:3

0am

12:3

0pm

1:30

pm2:

30pm

3:30

pm4:

30pm

5:30

pm

6:30

pm7:

30pm

8:30

pm9:

30pm

10:3

0pm

11:3

0pm

Average Profile 6/24/2013 Baseline

Baseline Step #4

• Apply day-of adjustment to create baseline

8/24/2018


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Performance Calculation

• Baseline minus event day


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Capacity Payments

• If monthly pilot requirements are met, then:Capacity payment =

[Capacity Price] x [Nomination] x [Monthly Performance]

• Capacity Price: $10/kW-month• Nomination: Monthly kW number chosen by

participant• Monthly performance: (see next slide)


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Adjustment Factor

• Performance values rounded up for settlement:


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Wholesale Energy Payments

• ISO Day-ahead (DA) awards settled at DA energy clearing price

• Any over-delivery and under-delivery are settled at the Real-time (RT) Uninstructed Imbalance Energy price

Wholesale Settlement = {DA energy price x DA award}

±{Over/Under Delivery x RT price}


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ISO Calculation: Example

Assumptions:– Assume award is for 3 consecutive hours– Day-ahead energy price is $60.00 / MWH– Real-time imbalance energy price is $72.00 /

MWH


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ISO Calculation: Over-Delivery


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ISO Calculation: Under-Delivery

300

350

400


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Real-time (RT) & Ancillary Services (A/S)

• Both are optional• No enablement funds available• No additional pilot capacity payments;

wholesale settlements are still passed through• Have additional requirements• Requires minimum three months active

participation in Day-ahead (DA) SSP• A/S requires 500 kW and longer timelines


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Real-time (RT) Participation

• Requires minimum three months active participation in Day-ahead (DA) SSP

• RT Market bids are hourly• If awarded, participant receives RT Dispatches

in 5-minute intervals:– Requires RT Control (OpenADR); must be able to

respond to dispatch signals– Signals come 2 ½ minutes before dispatch interval


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Real-time (RT) Participation

• Bids initially entered in DA• If no awards, must bid those hours in RT• Participants may provide conditional bids to

be sent RT or enter bids manually: – May insert/edit bids until 2 hours before trade

hour• RT bid prices & quantities:

– No RT bid price ceiling– Hours with dispatches for bids at or above

nomination count towards 24 hours


TMConclusion: Participant Next Steps

• Complete DOI forms as soon as possible– 1 resource per participant, with limits on capacity

& number of locations

• Contact:– [email protected]– http://olivineinc.com/ssp/

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